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Metropolitan Water District’s budget committee approves 14.3% hike, but some say 20% hike is needed

Posted by: Aqua Blog Maven on March 11, 2008 at 6:12 am

From the Los Angeles Times:

img_0232.JPG Some Southern California households would pay up to 14% more per month for water in 2009 under a plan unanimously approved Monday by a key regional water panel. The water rate increase, driven by shortages in supplies, would vary widely depending on how much water cities and local water agencies buy from the MWD, which serves 18 million consumers in six counties.

The controversial rate hike goes before the entire Metropolitan Water District board today, with some members saying an even larger increase might be needed.

Although the 14.3% increase unanimously passed the MWD’s budget committee Monday, some members voiced concern that the hike does not cover the full cost of bringing water to the region and will force them to take $117 million from shrinking reserves. Rates would have to go up 20% next year to cover expenses, said Brian G. Thomas, the agency’s chief financial officer.

Board member Willard H. Murray Jr. said he plans to propose a 20% increase when the full 37-member board meets at noon today at MWD headquarters in Los Angeles. “We should collect enough to pay for the services we provide,” said Murray, who represents the Carson-based West Basin Municipal Water District. He failed in a Monday motion to force a vote on a 20% increase.

The sole member of the public to speak at Monday’s meeting told the board that a 14.3% jump is too high for lower-income residents. “We urge you to delay the decision and do an economic analysis,” said Miriam Torres of the Environmental Justice Coalition for Water, who said residents do not know about the increase.

Get the rest of the story from the Los Angeles Times by clicking here.

March 11, 2008 · Filed Under Metropolitan Water District, Water Agency News (all)

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